Widow secures tax victory

6:05pm Thursday 8th May 2008

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A CRUSADING mum has won a victory for all Britain's grieving widows.

Thousands of women whose husbands have died will win payouts thanks to Janet Scott Four years ago she was devastated when her husband Jon died of a brain hemorrhage aged just 32.

Janet, 35, was thrown into turmoil as her she battled to secure her home and help support her two kids Daniel and Rebecca through their shock and trauma.

Government rules meant widows like her would lose out on tax benefits and the civil servant decided to take them on.

Now, after a tireless fight, she's won victory.

Jane Kennedy, Financial Secretary to the Treasury, has written to her pledging to change bereavement benefit rules.

That means thousands of other widows will now receive tax breaks.

Under existing rules bereavement benefits designed to help a surviving parent raise their children must be declared as an income that can be taxed.

But divorcees do not need to declare maintenance payments from former partners.

That means widows and widowers are worse off then divorcees and Janet battled for equality, saying the bereaved were worse off by thousands of pounds every year.

The mum, from Birtley, Gateshead, Tyneside, said: "Receiving that letter has been fantastic, it has made all the work worthwhile.

"It was so difficult for us all when Jon died.

"We had to deal with the loss and also I felt that no matter what I did I was stuck financially.

"It's wrong that widows lose out. You are at your most vulnerable and you're trying to raise children after losing your partner.

"I managed to go to London and see Jane Kennedy after my MP Dave Anderson, arranged a meeting between us.

"Now we're really close to seeing something done about this."

Widow benefit, currently fixed at £6,000, is paid by the Government until the youngest child has finished education.

The amount Janet stands to lose through tax by the time Daniel, nine, is out of education is £15,000.

Jon, a care worker, left work early suffering from a headache and went to lie down on the couple's bed, where he died.

Dave Anderson said: "I am glad the Treasury has agreed to look at this important issue again through bereavement benefit reforms.

"The situation potentially affects thousands of widows across the country who rely on widowed parents' allowance.

"I am so pleased Janet brought this issue to my attention and raised it on behalf of the thousands of widowed parents it affects across the country.

"Janet has shown so much commitment to the issue and we were delighted to help her fight this cause for all the families affected."

The letter form Jane Kennedy says that Janet was "rightly concerned" about the issue.

It goes on to say: "I must thank you for taking the time to explain to me the perceived unfairness in the way widows' parents allowance is treated for tax credit purposes.

"The Treasury and the Department for Work and Pensions will look at ways to mitigate differences through proposed reforms to bereavement benefits.

"You were rightly concerned widowed parents may take the view that it is unfair that child maintenance is fully disregarded in the calculation of income tax liability and tax credits, while widows' parents allowance is not.

"The treasury and the DWP will look at ways to mitigate differences through proposed reforms to bereavement benefits."